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Indiabulls Housing to raise capital

Indiabulls Housing to raise capital

Indiabulls Housing Finance may mop up 40 per cent of the Rs 10,500 crore capital that it plans to raise in 2013-14, through banks, agency report indicates.

The company would issue bonds to raise another 40 percent of the amount, while the portfolio sell down or securitisation will account to 20 per cent.

The firm plans to increase the amount of fund raised through securitisation because of liquidity tightening by Reserve Bank of India.

It has been doing securitisation transactions for over three years but this year its share will increase, reports quoted a top official of the firm as saying.

After RBI tightened liquidity in the banking system to stabilise rupee exchange rate, interest rates rose in the money markets.

The NBFC got listed after the Indiabulls Group completed the reverse merger between Indiabulls Finance Services and Indiabulls Housing Finance.

Meanwhile, the net profit of the housing finance rose 31.35 per cent in the June quarter owing to a healthy increase in core net interest income.

The firm has an extra liquidity of around Rs 7,500 crore parked in various liquid instruments.

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